As the international average oil price approaches US$92, the
domestic wholesale price of processed oil saw another leap that
resulted in an oil shortfall nationwide. Last week, dozens of
cities raised oil price every single day. Diesel oil accounts for
the biggest price rise. For example, the wholesale price of
Zhengzhou diesel oil number zero rose by 330 to 400 yuan, reaching
6,370 yuan per ton.
"Although the season of autumn harvest has ended, the demand of
diesel oil doesn't decline. The demand mainly comes from fishing
ships which sail out after termination of the fishing ban. In
addition, extra engineering projects also have a strong demand for
diesel oil," said Li Yu, chief editor of www.oilboss.cn. Since the
continuous increase of the international oil price, domestic oil
refineries have suffered heavy losses, forcing them to reduce
operation rates.
"We are faced with an increasing oil demand coupled with a
decreasing supply. These two trends together push the oil price
upwards. The tension between supply and demand will continue in the
near future," said Li.
Experts pointed out that the situation might be remedied through
a rational pricing system. However, with the current high oil
price, it is not the right time to switch to a market-oriented
pricing system. The National Development and Reform Commission
(NDRC) also confirmed that there was no current plan to raise oil
prices.
For more details, please read the full story in Chinese. (
http://epaper.dfdaily.com/dfzb/html/2007-10/29/content_19109.htm)
(China.org.cn October 29, 2007)
